Vanhanen: Climate more important than cheap electricity

Prime Minister Matti Vanhanen (Centre) says that the price of electricity should not be the focus of energy policy debate.
      "For decades we have grown accustomed to the price of energy being the main argument for making choices between different energy solutions. We must forget that", the Prime Minister said on Friday in an interview with Helsingin Sanomat.
      Vanhanen says that a real change is needed in climate policy, and that it will not happen without pain.
     
"The government is preparing an energy strategy. It will be very difficult. The price of energy will rise in Finland without a doubt."
      According to Vanhanen, the energy tax debate in the autumn revealed public attitudes in a manner that is a cause for concern.
      "Price continues to be the principle way that far too many people approach energy solutions", said Vanhanen, adding that is possible to offset the rise in price by filling the petrol tank one time less in a year.
      On Tuesday Helsingin Sanomat wrote that Finland does not rank very high on the list of countries taking measures to reduce energy consumption; Finland has fallen far behind Sweden in this respect.
      Vanhanen notes that in many EU countries, the price of electricity is double what it is in Finland. In his view, Finns consume a massive amount of energy on a per capita basis, and must get used to paying more - and especially to saving electricity.
     
The climate policy decisions set by the government so far, such as an increase in energy taxation of EUR 300 million, are only the beginning in Vanhanen's view. In addition to taxation and legislation aimed at changing habits, economic carrots are also needed.
      The Prime Minister is in favour of the kinds of fees for wind energy that were supported recently by Environment Minister Kimmo Tiilikainen (Centre), under which the buyer of electricity pays for the costs of building wind power plants.
      Vanhanen says that some of Finland's wind power projects would require up to 40 per cent state investment support.
      "The state coffers do not have enough money to significantly increase wind power, if such high investment supports are needed. Then it would be better to find ways in which the buyers of electricity would pay for the more expensive electricity."
      The pricing system was not taken into the government's policy programme, because the National Coalition Party, the main partner in Vanhanen's four-party government, is opposed to the idea. However, Vanhanen reiterated that the issue is under strong consideration in the preparation for a new energy strategy.
     
Vanhanen warns that driving cannot continue at the present rate.
      He said that emissions from transport can be reduced by a double-digit percentage if the EU imposes more stringent demands on engine technology, and at the same time calls for an increase in biological fuels.
      "For the future I see that fuel consumption in cars need to get to the level of four or five litres per hundred kilometres, and the fuel must have lower carbon dioxide emissions", Vanhanen says.
      "This also means a reduction of power output, but the efficiency of engines has also improved, which means that we get more for less."


Previously in HS International Edition:
  Halonen calls UN climate meeting a success (27.9.2007)
  Poll: Finns want politicians to take action on climate change (30.1.2007)
  New mission for Jorma Ollila: fighting climate change (28.1.2007)
  EU study: Climate change will initially benefit Nordic regions (8.1.2007)
  Global warming: Disgust at the barber shop (1.2.2007)
  Finland falls behind many other countries on climate issues (2.10.2007)